Tariff talks: Indonesia proposes an increase of $10 billion in US energy imports

Energy Minister Bahlil Lahadalia said to local media that Indonesia would propose an increase of around $10 billion in its crude oil and liquefied gas imports from the United States as part of its ongoing tariff negotiations.

Indonesian officials will be leaving for Washington, D.C. later Tuesday to negotiate proposed U.S. tariffs.

Indonesia will buy goods from the U.S. worth between $18 and $19 billion in order to reduce its trade surplus, as well as to avoid a 32% tariff threat on its exports.

Bahlil stated that the energy ministry recommends increasing the LPG export quota to the U.S. as well as import more U.S. crude oil, in order to reach the target.

Putra Adhiguna is the managing director of Energy Shift Institute. He said that Indonesia will need to reduce its LPG imports originating from other countries.

Kpler data shows that Indonesia imported around 217,000 barrels of LPG per day last year. The U.S. contributed 124,000 bpd, and the United Arab Emirates, Saudi Arabia, and Qatar each contributed around 23,000 bpd.

Kpler data revealed that Indonesia imported crude oil of around 306,000 barrels per day last year. The top three suppliers were Nigeria, Saudi Arabia, and Angola. About 13,000 bpd of crude oil was imported from the U.S.

A spokeswoman at Pertamina (the largest LPG retailer) said that the company was reviewing its imports, and waiting for instructions from the government. (Reporting and editing by John Mair, Barbara Lewis, Florence Tan, Ananda Terresia, Additional reporting by Fransiska Nanangoy)

(source: Reuters)